what is crm and why do most implementations fail
DESCRIPTION
CRM (Customer Relationship Management) is more than just a computer database, and therein lies the problem. People and processes are involved. Computers don't make mistakes, people do! Peter Flory recounts stories of more 20 years worth of NfP CRM systems implementations and asks, "Why don't we seem to learn from past mistakes?"TRANSCRIPT
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What is CRM and why do most
implementations FAIL?
by Peter FloryIndependent Consultant and
Research Fellow at Brunel University
06 June 2012
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IT Project Success Rates - 1995
Ref: Standish Group
16%
53%
31%SuccessChallengedFailure
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IT Project Success Rates - 2011
Ref: Standish Group
37%
42%
21%
SuccessChallengedFailure
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Oh, no we’re not! We still have roughly only a one in three chance of a
successful project! WHY? There is no such thing as an IT project! There are only Business Projects! And that means an equal measure of:
◦ People ◦ Processes ◦ Technology
Forget this at your peril!
Aren’t we doing well!
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What is CRM in the NfP Sector?
NfP CRM encompasses all the processes that enable the organisation to fulfil its social mission by acquiring and retaining customers (funders, service users, volunteers and suppliers alike) and facilitating a two-way exchange of high quality customised products and services that best fit their needs and criteria, in return for compensation which may or may not be financial and which may or not be tangible.
My academic definition!
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….or to put it more simply
“NfP CRM is the process of doing good by attracting and keeping customers (funders, service users, volunteers and suppliers alike), being nice to them and giving them what they want! (Money comes into it but only as a means to an end).”
My understandable definition!
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Key Features of NfP CRM It is not an IT System; it is a complete organisational
philosophy It’s a whole way of working It’s all encompassing It’s relevant to the entire organisation Your “customers” are everyone you come into contact
with (and more!) So it’s about you and everyone else in your
organisation, what you do, how you do it and the tools you use
…and the database is just one tool!06 June 2012
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The 8 Principles of CRM
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CRM Structure - “The 3 Circles”
or“Communications” “Nuts and bolts” “Clever stuff”
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What goes wrong?
People
Processes
Technology06 June 2012
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Case 1 – Poor management◦ 3 CRM systems in 5 years!◦ System 1; trustee, smarmy salesman, staff ignored◦ System 2; another trustee, no proper requirements spec◦ System 3; a third trustee, consultant, staff involvement◦ Success at last
Case2 – Staff “too busy”◦ Bespoke development ◦ Project Manager did the testing◦ Implementation ◦ Staff rejected the system
Failed and challenged projects
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Case 3 – “Smoke and mirrors”◦ Half price system, impressive demonstrations◦ Chairman overruled staff◦ 2 years of developments◦ They now have a unique bespoke solution!
Case 4 – Procedures and the “big picture”◦ Effective selection process ◦ Old spreadsheet quicker than new system◦ One department never used system◦ No “single supporter view”◦ No resolution
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Case 5 – “The boss knows best”◦ Staff preferred product X – simple, friendly◦ Director preferred product Y – modern, whizzy◦ Purchased product Y, Half the staff used it and half didn’t◦ Director left - chaos, recriminations ◦ No resolution
Case 6 – “Where’s the data?”◦ Selection returned 360 records, expected 3000◦ Data entered in different ways◦ System allowed multiple data entry methods◦ No standard clerical procedures resulting in a complete mess◦ Hired a DBA for 6 months to clean up the mess – he is still there
three years later!06 June 2012
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Case 7 – Politics and data silos◦ Effective selection process, all staff involved ◦ One department - “their” data and “their” contacts must be
completely shielded from other departments◦ Result – hugely complex system and bureaucratic
procedures to provide the “single supporter view”
Case 8 – Change management◦ New system implemented in a large organisation which would
affect 150 staff◦ Of the 150 jobs involved; 30 disappeared, 100 changed and only 20
remained the same◦ The changes not all applied 3 years later when a another new
system was proposed06 June 2012
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Case 9 – “The dinosaur”◦ Large organisation, many years, many millions of pounds,
bespoke system◦ Three full-time systems analysts!◦ Advised to buy package, ignored advice◦ More years, more millions, bought packaged system!
Case 10 – No-one in control◦ One of “the usual suspects” was chosen◦ Implemented one department at a time◦ Second department wanted the entire system table structure
altered to suit the way they worked◦ Took nearly 4 years to fully implement a packaged system!
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Case 11 – Lack of knowledge◦ System worked fine, everyone happy◦ Key staff member left and the system stopped working◦ No-one knew how to keep it running properly◦ System rapidly fell into disuse and was finally abandoned
Case 12 – Inexperience◦ Consultant did requirements, client chose supplier◦ Client “I’ve chosen X”, Consultant “You’ve made a big mistake”◦ Client “They are British, round the corner and the cheapest”◦ 12 months later the consultant’s phone rang and a familiar voice
said “Please help me sue my supplier”◦ Result - No court case, purchased new system
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Case 13 – Pigheadedness◦ Chief Executive chose a system for the staff◦ Staff couldn’t make it work for them, ◦ Staff requested a change of system◦ Chief Exec refused – “make it work”◦ Staff didn’t use it and developed their own Access and Excel
systems (and the Chief Exec never knew!)
Case 14 - Procedural changes◦ New system, new procedures to be more efficient◦ One department refused to change their procedures◦ Hired extra staff to cope with the extra workload “necessitated” by
the new system◦ Extra staff cost £50,000 per annum
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Case 15 – Out of control◦ Bespoke development ◦ Fixed price contract for £24,000◦ Spent £90,000◦ Finally bought one of the usual suspects!
Case 16 – ◦ Very small charity bought product Y for £20,000 (+ £3,000
annual support) ◦ Used a fraction of it◦ Replaced it with product Z at £2,000 (plus £750 annual
support)!
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Case 17 – “My system doesn’t work”◦ On at least 20 occasions I have been told by a client “My
system is rubbish, it doesn’t work and I want you to help me choose another one” AND I have convinced them to stick with what they have got!!
◦ Upon investigation the problem/s turned out to be one of: Hadn’t upgraded to the latest version Incorrect configuration Didn’t know the required facilities already existed Lack of training Not using it correctly Unnecessarily convoluted procedures
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So what can we learn?
People
Processes
Technology06 June 2012
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Get the right people doing the right job Project Sponsor (preferable the Chief Executive)
◦ Full support, can bang heads together when necessary◦ Allocates a sensible budget◦ Doesn’t interfere!
Project Manager (preferably internal)◦ Competent, strong-willed, with the right experience◦ Dedicated
Staff (ALL staff who will be affected)◦ Involved in the entire process from beginning to end
External support (if needed)◦ Consultant, project manager, temporary staff
The biggest Problem – People!
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More about people in general Organisational inertia People fear and resist change Management must provide - vision, enthusiasm,
environment for learning and success Staff involvement at all times (specification, selection,
configuration, testing, operational changes, review) Need to manage expectations Need to communicate, communicate, communicate Seek and take advice Full training and full support at all times Boredom and disillusionment if timescale is too long!
People
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Process review◦ Always, always do a review of current processes◦ Work with supplier to map them onto the new system in the
most effective manner◦ Be prepared to change!
Change management◦ New systems ALWAYS means new and changed processes◦ This is a whole subject in itself and it must be handled
sensitively◦ Encouragement, enthusiasm, support and training
Processes
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Get the requirements right, what is important, detail, detail, detail
Get the selection right, don’t just buy the cheapest Make infrastructure changes if required Effective project management Testing, testing, testing Training, training, training Proper change control procedures Manage your supplier – don’t let them manage you!
Technology
Supplier?You?
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Remember - technology rarely fails but people often do! They often:
◦ Have unrealistic expectations◦ Don’t specify what they want properly◦ Don’t carry out due diligence◦ Don’t realise the true scale of the project◦ Choose the system and then sit back and expect it to “just
happen”◦ Are overly protective of “their” area and “their” data◦ Are afraid of and actively resist change
And finally….
Sort that lot out and you will have a successful project - GOOD LUCK!06 June 2012
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And if you need any help….who are you going to call? Peter Flory E-mail: [email protected]
Tel: 0118 986 6623 Mobile: 07860 451 830
06 June 2012